Physician mortgage loans (also called doctor loans) can let a medical professional buy with little or no down payment and often no monthly PMI, even with six figures of student debt. I’m Duane Buziak, and I want to say up front that I do not offer them. Glen Allen Mortgage by Duane Buziak does not originate this product, so you are getting a broker’s view of it, not a sales pitch.
If you are a resident, fellow, or new attending working near Short Pump or Innsbrook, the pull toward a doctor loan is understandable. Below I cover what the product promises, where it costs more than it looks, a worked $600,000 example, a side-by-side comparison with the loans I do offer, and answers to the questions doctors ask me most.
By Duane Buziak, NMLS #1110647
- The benefits physician loans promise
- Where physician loans cost more than they seem
- Worked dollar example: $600,000 Glen Allen home
- Comparison table
- What I do instead for doctors buying in Henrico
- Physician mortgage loan questions answered
- When a doctor loan is worth pursuing
The Benefits Physician Loans Promise Doctors in Glen Allen and Short Pump
A physician mortgage loan is a home loan some banks design for medical professionals, usually MDs and DOs, and sometimes dentists, optometrists, or other advanced degrees. Most are portfolio loans, meaning the bank keeps the loan instead of selling it to Fannie Mae or Freddie Mac. That lets the bank write its own underwriting rules, which is why terms differ from one institution to the next. Treat everything below as typical, not guaranteed.
The benefits that matter most:
- Low or no down payment. Some programs allow 0% to 5% down on loan amounts that would normally call for much more.
- No monthly PMI in many programs. PMI, private mortgage insurance, is the monthly charge on most conventional loans with less than 20% down. The Consumer Financial Protection Bureau explains how it works. Many doctor loans skip it, though the bank usually recovers that risk somewhere else.
- Flexible student loan treatment. Standard underwriting counts a monthly payment against your debt-to-income ratio (DTI). If your loans are in deferment or on an income-driven plan, a conventional file may count a small figure or a percentage of the balance. Some physician programs count the actual income-driven payment, or exclude deferred loans.
- Closing before you start work. Many programs accept a signed employment contract in place of pay stubs, so a resident or fellow can close one to several months before the first paycheck.
Here is the tension these loans are built for. Picture a third-year resident who matched into a position near Innsbrook and has a contract for an attending role starting next summer. She wants a house in Twin Hickory, Wyndham, or Lakeside, close enough for a quick Crump Park walk with the dog after a long shift. Her income potential is high, her savings are thin, and her loan balances are large. A standard file can make that look worse than it is, and a doctor loan was designed to look past that.
That is a real advantage in the right situation. It is not the whole story.
Where Physician Loans Cost More Than They Seem
The most common misconception I hear is that no PMI means a cheaper loan. It does not. Many doctor loans carry a higher interest rate than a comparable conventional loan, and some are adjustable-rate, with a fixed period of five, seven, or ten years before the rate can move. A quarter-point higher rate on a large balance can cost as much each month as the PMI you avoided, and unlike PMI, a higher rate does not go away when your equity grows. Compare the full rate, fees, and monthly payment, not the PMI line alone.
Eligibility and program rules
Not every doctor qualifies, and not every program fits every purchase. Watch for these:
- Eligible degrees and career stages are defined by each bank. Some cover residents and fellows, some require a minimum time in practice.
- Maximum loan amounts and required down payment often step up as the price rises.
- Most programs are for a primary residence only, so a future rental or second home may not qualify.
- Some banks expect you to open deposit accounts or keep a relationship with them.
- Refinancing out later may be limited by the loan’s structure or any prepayment terms.
None of these is a deal breaker. All of them belong in writing. Ask for the Loan Estimate and read the rate, the adjustable-rate terms if any, the fees, and any relationship requirements before you commit. Do not rely on a verbal summary from anyone, including me.
The thin equity cushion
Buying with almost nothing down means almost no equity on day one. If you later need to sell, selling costs and a modest dip in value can leave you owing more than the home brings in. This is a risk to weigh, not a prediction about Henrico prices. Residents and fellows are the group most likely to relocate for a first attending job, so a short holding period matters here more than for most buyers.
Worked Dollar Example: $600,000 Glen Allen Home, Doctor Loan vs. Conventional
This is an illustration, not a quote. Suppose you buy a $600,000 home in the Glen Allen area. The rates below are assumptions chosen to show the math. Check the current national average on the Freddie Mac Primary Mortgage Market Survey, which is updated weekly, and note that your rate depends on your credit, the loan, and the day you lock. Payments below are principal and interest on a 30-year fixed loan, before taxes and homeowners insurance.
- Conventional, 20% down: $120,000 down, $480,000 loan at an assumed 6.25%. Principal and interest: about $2,956 a month. No PMI.
- Conventional, 3% down: $18,000 down, $582,000 loan at the same 6.25%. Principal and interest: about $3,584. Assume PMI at 0.70% a year, about $340 a month. Total: roughly $3,924. PMI pricing varies widely with credit score.
- Doctor loan, 3% down, no PMI: $582,000 loan at a hypothetical 6.50%, a quarter point above the conventional assumption. Principal and interest: about $3,679 a month.
Read the gaps. Against the 3%-down conventional loan, the doctor loan in this scenario saves about $245 a month. Against the 20%-down loan, it costs about $723 more each month. And the difference in cash to close is $102,000, the gap between $18,000 and $120,000 down.
That is the trade in plain numbers. The 20% option has the lowest payment and the most equity, but it takes $102,000 you may not have, or may prefer to keep for emergencies, moving costs, or loan payoff. The low-down options cost roughly $700 to $970 more per month in this example, and they leave you with a thin cushion. If the home slipped 5% in value, that is $30,000, and a $582,000 balance would exceed a $570,000 value by about $12,000 before selling costs.
If the doctor loan’s rate were two-tenths higher or its fees heavier, the $245 advantage would shrink fast. Run the same comparison with real quotes, not assumptions.
Physician Loans vs. the Options Duane Buziak Offers: Comparison Table
Physician loan terms below vary by bank. Physician loans are not offered at Glen Allen Mortgage by Duane Buziak, so that row is for reference only. The other four are products I can help you with.
| Loan type | Typical down payment | Mortgage insurance | Who qualifies | Key caveat |
|---|---|---|---|---|
| Physician loan (not offered by Duane Buziak; varies by bank) | 0% to 5% in many programs | Often none monthly | Eligible medical degrees and career stages, set by each bank | Rate may be higher or adjustable; relationship rules vary |
| Conventional, 3% to 5% down | 3% to 5% | PMI, removable as equity builds | Credit and income meet standard guidelines; some options are for first-time buyers | PMI cost depends on credit score |
| FHA | 3.5% with a qualifying credit score | Upfront and annual premiums | Wider credit flexibility; HUD sets the program rules | Premiums often last longer than PMI |
| VA | Often 0% | None, but a funding fee usually applies | Eligible veterans and service members; see VA.gov | Only for those with eligible service |
| Conventional, 20% down | 20% | None | Standard credit and income guidelines | Requires the most cash up front |
The conforming loan limit matters for doctors because physician loans often shine at higher prices. For 2026, the baseline limit that I understand applies to Henrico is $832,750, announced by the Federal Housing Finance Agency. Confirm it on FHFA’s site before you rely on it. Loans above the limit are jumbo loans, which usually need larger down payments and stronger reserves. A purchase well under the limit, as in the example above, can often work with standard conventional programs.
What Duane Buziak Does Instead for Doctors Buying in Henrico
Duane Buziak, NMLS #1110647, does not offer physician loans. What I do offer can fit a doctor’s situation better than people expect:
- Conventional with low down payment. If your credit is solid, 3% to 5% down with PMI can be competitive, especially since PMI can come off once you build enough equity.
- FHA. A 3.5% down option with more credit flexibility when scores or debt load are tight.
- VA. For physicians who are also veterans or service members, often no down payment and no monthly mortgage insurance.
- Home renovation loans. For a Twin Hickory or Wyndham home that needs work, financing the purchase and the updates together can beat paying cash for both.
- Cash-out refinancing. For established homeowners, up to 90% in some cases, depending on the program and your file.
I work as a broker, not a single bank, so I can shop hundreds of wholesale sources at once. For you, that means comparing rates and fees across many programs with one application, instead of running a separate application at each bank. It is also how I check whether a conventional or FHA structure can match what you hoped to get from a doctor loan.
The first step costs your credit nothing. My NoTouch Credit Pull is a soft credit pull mortgage step that lets me review your file without a hard inquiry, so you can get a pre-approval picture with no credit hit. If you are also comparing banks, this keeps your score intact while you decide. Ask me about down payment assistance programs that may be available, and I will tell you what you qualify for at the time you apply.
To start, call 804-212-8663 or stop by 4860 Cox Rd, Glen Allen, VA 23060.
Physician Mortgage Loan Questions Answered
Who qualifies for a physician mortgage loan?
Typically MDs and DOs, and at some banks dentists, optometrists, or other advanced degrees, at defined career stages such as residency, fellowship, or early practice. Each bank sets its own list, so eligibility differs. Confirm the rules in writing before you assume you qualify.
Do doctor loans have PMI?
Many do not charge monthly PMI, even with little down. That does not make them automatically cheaper, because the bank may offset the risk with a higher rate or other fees. Compare total monthly payment and rate, not just whether PMI appears.
Can residents get a physician loan before starting work?
Often yes. Many programs accept a signed employment contract instead of pay stubs, which can allow closing before your start date. The allowed lead time varies by bank, and some require proof of license or graduation.
How do physician loans treat student loans?
Many count your actual income-driven payment or exclude deferred loans from DTI, which can help a high-balance borrower qualify. Standard conventional guidelines may count a set percentage of the balance instead. The treatment varies by bank, so ask how yours would be calculated.
Are physician loan rates higher?
Often, yes. Many carry a rate somewhat above comparable conventional loans, and some are adjustable-rate. The gap changes by bank and market. Ask for a Loan Estimate and compare it against a conventional quote on the same day.
Can a doctor get a conventional loan with 3% down?
Yes, if you meet the credit, income, and program guidelines. Some conventional programs allow 3% down, particularly for first-time buyers, with PMI that can later be removed. On a $600,000 home, that is $18,000 down.
Does Duane Buziak offer physician loans?
No. Duane Buziak, NMLS #1110647, does not originate physician loans. He offers conventional loans with as little as 3% down, FHA loans at 3.5% down, VA loans, and home renovation loans, and he can compare them against a doctor loan quote you bring.
Can GlenAllenMortgage.com check my options without a hard inquiry?
Yes. GlenAllenMortgage.com uses a NoTouch Credit Pull, a soft pull that causes no hard inquiry, so you can see pre-approval options without a credit hit. A hard inquiry is only needed later, when you decide to move forward with a specific loan.
What conforming loan limit applies to doctors buying in Henrico in 2026?
The 2026 baseline conforming limit is $832,750 for a one-unit home, which I understand applies to Henrico. Above that is jumbo territory. Verify the figure on the Federal Housing Finance Agency site, since limits are set annually.
Is it worth talking to Duane Buziak if I plan to use a physician loan elsewhere?
Yes. Duane Buziak can price conventional and FHA options for the same purchase, such as a $582,000 loan after 3% down, so you can compare a doctor loan’s rate, fees, and monthly payment against a real alternative before you commit.
When a Doctor Loan Is Worth Pursuing, and When It Isn’t
Physician loans can help a doctor buy sooner, with less cash, while student debt is high and income is about to rise. They are not always cheaper. A higher rate, an adjustable structure, or a thin equity cushion can erase the PMI savings, so the only reliable test is putting real quotes side by side.
If you want that comparison without a hard inquiry, I can run the numbers on the options I offer and help you see where a doctor loan from another bank would beat them and where it would not. Get your free mortgage consultation today and discover why Glen Allen families trust Duane Buziak for personalized guidance and the fastest close times in the area. Ready to experience stress-free mortgage approval with no credit hit and access to hundreds of lenders at once? Call 804-212-8663 or visit 4860 Cox Rd, Glen Allen, VA 23060.
